Tests of the perpetual inventory master files for the purpose of reducing the tests of physical inventory or changing their timing are done through the use of:
A) inquiry.
B) observation.
C) confirmation.
D) documentation.

Question

Quizplus · Accepted Answer

Documentation is used to verify the accuracy and completeness of perpetual inventory records, allowing auditors to reduce or adjust the timing of physical inventory tests.

Tests of the Perpetual Inventory Master Files for the Purpose